Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Novak Inc. makes unfinished bookcases that it sells for $ 6 0 . Production costs are $ 3 8 variable and $ 1 0 fixed.

Novak Inc. makes unfinished bookcases that it sells for $60. Production costs are $38 variable and $10 fixed. Because it has unused
capacity, Novak is considering finishing the bookcases and selling them for $72. Variable finishing costs are expected to be $9 per unit
with no increase in fixed costs.
Prepare an analysis on a per-unit basis that shows whether Novak should sell unfinished or finished bookcases. (If an amount reduces
the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g.(15,000).)
Variable cost per unit
Fixed cost per unit
Total per unit cost
Net income per unitBlossom Manufacturing incurs unit costs of $ 7.10( $ 5.10 variable and $ 200 fixed) in making a sub-assembly part for its finished product A supplier offers to make 11,200 of the parts for $ 5.60 per unit If it accepts the offer, Blossom will save all variable costs and $ 100 of fixed costs Prepare an analysis showing the total cost savings, if any, that Blossom will realize by buying the part. (Round per unit answers to 2 decimal ploces, eg 1525. If an amoumt restuces the net income then enter with a negative sign precieding the number, 8g-15,000 or parrentheris es (15,000)) Atternpts: 0 of 2 usedCurrent Attempt in Progress Blossom Manufacturing incurs unit costs of $ 7.10( $ 5.10 variable and $ 2.00 fixed) in making a sub assembly part for its finished product A supplier offers to make 11,200 of the parts for $ 5,60 per unit. If it accepts the offer. Blossom will save all variable costs and $ 100 of fixed costs. Prepare an analysis showing the total cost savings, if any that Blossom will realize by buying the part. (Round per unit answers to 2 decimal places, eg 15,25. If an amournt neducres the net income then enter wilb a reggotine sign preceding the number, eg -15,000 ar parmentheris, eg,(15,000)] The decision should be to
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Law And Economics Of Patent Damages, Antitrust, And Legal Process

Authors: James Langenfeld, Frank Fagan, Samuel Clark

2nd Edition

1800710259, 9781800710252

More Books

Students also viewed these Accounting questions